Dream home purchase for client with one years’ self-employed accounts
The situation?
A little while ago I was contacted by a long-standing HNW client of mine, who had found their dream home. Eager to purchase it, the existing mortgage on their house was with a major high street lender, fixed in for another 2 years.
Ideally, the client wanted to port their mortgage over to their new house. The new home was also a joint purchase with the client’s partner, who had already sold their previously owned property in order to raise capital and contribute to the deposit from the sale.
Complexities arose in this application surrounding the client’s employment. Previously, the client had been a senior manager at an accountancy firm on a six-figure basic salary. But, since taking out their original mortgage product the client had left their role to go it alone, setting up their own business. The new business had only been trading for 16 months, therefore had just over one year’s accounts available to verify their updated income.
The loan amount required by the client was comfortably within the lender’s affordability assessment based on this one year’s income and their partner’s income combined, however, their existing lender would not allow them to use this income for a porting application. The reason for this was that the lender required two years of self-employed accounts for the business before they would consider taking porting into account.
The solution?
Although a vast majority of lenders also require two years’ accounts before they’ll take into consideration self-employed income, thanks to our reputation for working with, and understanding, HNW self-employed client profiles and accounts, we have access to carefully selected lenders that will consider one year’s accounts.
I was able to work alongside a lender with a market-leading interest rate, to consider this intricate application and as such, the client’s house move was back on! Although the client did have to pay an early repayment penalty on their existing mortgage, the new property was the couple’s dream home so they were delighted with this outcome.